China Daily reports 16 August 2004 that China's biotech sector is still in its infancy and too weak to attract VC's.
"Compared with Singapore and Taiwan Province, the Chinese mainland still lacks human resources, GMP (good manufacturing process)-certificated plants, a fair environment and good intellectual property right (IPR) protection for drug innovation," said Mark Tang, co-founder and managing director of the World Biotechnology Forum. "Those are major obstacles blocking foreign venture capitalists' efforts to pour their money into China's biotech sector."
According to the report China has more than 20,000 life-science researchers, and more than 300 public laboratories nationwide.
Concerns remain with implementation of IP laws despite progress following China's WTO accession in 2001. Uniform deployment of the changing regulatory environment remains problematic (and not just in biotech) reminding me of the proverb "The mountain is high and the emperor far away."
Apparently the Chinese Government plans to invest 12 billion yuan (US$1.45 billion) between 2001-05 to boost the development of the nation's biotechnology industry. Local governments are also anticipated in providing support, I imagine mostly via land subsidies and other concessions to attract investment to their region/province/town etc.
Biotech ventures are concentrated in Shanghai, Beijing and Shenzhen. The articles mentions Shanghai Sunway Biotech Co Ltd backed by State-owned Shanghai Alliance Investment Ltd and Chengdu Venture Capital Co Ltd, in Southwest China's Sichuan Province, as successful companies.
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